MEXICO CITY—Mexico has considerably decreased imports of U.S. gasoline since President Andrés Manuel López Obrador took workplace Dec. 1, as a authorities crackdown on gasoline theft has jammed up distribution and triggered widespread gasoline shortages.

Seaborne gasoline imports from the U.S. Gulf Coast have averaged about 350,000 barrels a day beneath Mr. López Obrador, a 28% decline from December 2017 and January 2018, based on analysis agency ClipperData.

The decline is the results of fewer orders of American gasoline and congestion at Mexico’s Gulf Coast gasoline terminals the place at the very least 15 tanker vessels had been idling within the Gulf of Mexico ready to unload a number of million barrels of gasoline as of Friday, based on trade analysts and authorities officers.

It additionally underscores the depth of a worsening gasoline scarcity throughout a lot of the nation that’s angering motorists by inflicting hourslong queues for gasoline, prompting some public transport to close down, and inflicting losses to corporations throughout central Mexico.

The federal government has defined the shortages as the results of Mr. López Obrador’s resolution to order the shutdown of a number of key pipelines that transport gasoline from refineries and coastal terminals to Mexico’s largest cities to fight rampant gasoline theft which the federal government says price state oil agency Petróleos Mexicanos, or Pemex, roughly $three billion final 12 months.

READ  China Breaks Its Silence on 90-Day U.S. Tariff Truce

However the origins of the disaster are extra complicated. The pipeline shutdown had the unintended consequence of constructing it tougher for gasoline tankers to unload their cargo at Mexico’s seaports after storage tanks crammed to capability.

The shortages additionally laid naked the inefficiencies of Mexico’s refineries—which operated at a mean every day capability of 46.1% final 12 months by way of November, based on Pemex figures—and raised questions in regards to the new administration’s reversal of steps taken by the earlier authorities to start importing gentle crude, obligatory for mixing with Mexico’s heavy Maya crude at refineries to provide gasoline.

The shortages are a stark reminder of the challenges Mr. López Obrador faces as he tries to remake Mexico’s power trade. The nationalist campaigned on a platform of power independence, pledging to reverse an extended slide in Pemex oil output, in addition to halt the export of Mexican crude and cut back the nation’s dependence on gasoline imports by constructing a brand new refinery and revamping the corporate’s growing old refineries.

“Do not forget that sadly, we purchase 600,000 barrels (of gasoline) a day,” Mr. López Obrador stated Friday. “We eat 800,000 barrels every day. We produce 200,000 barrels. So continually we now have ships getting into the ports.”

READ  Mayor Michael Hancock pitches November vote on new Denver transportation division

A Pemex spokeswoman attributed the slowdown in imports to seasonal components, noting that December is often the month of highest demand for gasoline in Mexico, and that imports usually sluggish in January. During the last 4 years by way of January 2018, Mexican gasoline imports have slowed by a mean of 8% between December and January, based on the U.S. Power Info Company.

For the primary 10 days of January, Mexico imported a mean of about 254,000 barrels every day from the U.S. Gulf Coast, based on ClipperData, a 33% decline from the earlier month and 45% decline from the every day common throughout January, 2018. Pemex didn’t reply to questions in regards to the year-over-year declines.

“It’s the definition of a bottleneck,” stated Gonzalo Monroy, an impartial power analyst in Mexico Metropolis. “If that they had sufficient transport hoses to dump the ships, and if that they had someplace to retailer the product, they might handle this downside,” he stated.

Decreased purchases from Mexico might weigh closely on U.S. refiners. Final 12 months, Mexico purchased about 60% of all U.S. gasoline exports, based on information from the U.S. Power Info Administration by way of October.

“It could create an issue within the short-term,” stated Sandy Fielden, director of oil analysis for Morningstar Inc. Long term, he stated, Mexico probably would wish to import gasoline from elsewhere if it reduces purchases from the U.S., inflicting commerce flows to shift and American refiners to search out new patrons.

READ  Mark Dantonio enthusiastic about 'nationwide model' matchup vs. Oregon in Redbox Bowl

The brand new Mexican administration additionally appears to have halted imports of sunshine crude oil from the U.S. Refiner

Phillips 66

loaded 4 shipments of sunshine crude sure for Mexico in October and November, based on ClipperData. Since then, all Mexican tenders for U.S. crude have halted, based on an individual acquainted with the matter.

The present gasoline disaster is the results of years of underinvestment in logistics infrastructure like storage tanks, pipelines and terminals, stated Monserrat Ramiro, certainly one of 5 commissioners on Mexico’s Power Regulatory Fee, which oversees distribution, transportation and retail gross sales of gasoline.

For years, Pemex has allotted assets to grease exploration and different high-margin actions on the expense of its logistics division, Ms. Ramiro stated.

Earlier than Mexico’s 2013 power overhaul, which opened up the trade to personal funding after 75 years of state monopoly, worth controls and subsidies on gasoline offered a disincentive to spend money on gasoline infrastructure.

Write to Robbie Whelan at [email protected] and Rebecca Elliott at [email protected]


Please enter your comment!
Please enter your name here